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Earthquake-split Haiti a gold mine of precious metals

| Friday, May 11, 2012, 6:14 p.m.

TROU DU NORD, Haiti -- Its capital is blighted with earthquake rubble. Its countryside is shorn of trees, chopped down for fuel. And yet, Haiti's land may hold the key to relieving centuries of poverty, disaster and disease: There is gold hidden in its hills -- and silver and copper, too.

A flurry of exploratory drilling in the past year has found precious metals worth potentially $20 billion deep below the tropical ridges in the country's northeastern mountains. Now, a mining company is drilling around the clock to determine how to get those metals out.

In neighboring Dominican Republic, workers are poised to start mining the other side of this seam later this year in one of the world's largest gold deposits: 23 million ounces worth about $40 billion.

Haiti's annual budget is $1 billion, more than half provided by foreign assistance. The largest single source of foreign investment, $2 billion, came from Haitians working abroad last year. A windfall of locally produced wealth could pay for roads, schools, clean water and sewage systems for the nation's 10 million people, most of whom live on as little as $1.25 a day.

"If the mining companies are honest and if Haiti has a good government, then here is a way for this country to move forward," said Bureau of Mines Director Dieuseul Anglade.

In a parking lot outside Anglade's marble-floored office, more than 100 families have been living in tents since the earthquake. "The gold in the mountains belongs to the people of Haiti," he said, gesturing out his window. "And they need it."

Haiti's geological vulnerability is also its promise. Massive tectonic plates squeeze the island with horrifying consequences, but deep cracks between them form convenient veins for gold, silver and copper pushed up from the hot innards of the planet. Prospectors from California to Chile know earthquake faults often have, quite literally, a golden lining.

Until now, few Haitians have known about this buried treasure. Mining camps are unmarked, and the work is being done miles up dirt roads near remote villages, on the opposite side of the country from the capital. But U.S. and Canadian investors have spent more than $30 million in recent years on everything from exploratory drilling to camps for workers, new roads, offices and laboratory studies of samples. Actual mining could be under way in five years.

"When I first heard whispers of this I said, 'Gold mines? There could be gold mines in Haiti?"' said Michel Lamarre, a Haitian engineer whose firm, SOMINE, is leading the exploration. "I truly believe this is our answer to taking care of ourselves instead of constantly living on donations."

In the 1970s, United Nations geologists documented significant pockets of gold and copper in Haiti, but foreigners weren't willing to risk their cash in a country where corruption and instability has long discouraged outside investment.

Ironically, it was only after the catastrophic 2010 earthquake that investors saw real opportunity. Fifteen days after a seismic jolt brought down much of Port-au- Prince, a Canadian exploration firm acquired all of the shares of the only Haitian firm holding full permits for a promising chunk of land in the northeast.

"Investors want to get in at the bottom," said Dan Hachey, president of Majescor Resources, the Canadian company, "and I figured after that earthquake, Haiti was as low as it could get."

Hachey was also betting that the $10 billion in foreign assistance promised for earthquake recovery would force change and accountability.

"The eyes of the world will not allow the government to fool around," he said.

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